Buchalter Mentioned in "Slack HQ lease brings all its employees under one roof"

San Francisco Business Times mentioned Buchalter in “Slack HQ lease brings all its employees under one roof” article

The downside of fast growth for messaging app Slack Technologies has been figuring out how to get all its employees in one place.

The red-hot tech startup, founded in 2009, solved that problem at the end of 2016 when it leased 230,000 square feet at Foundry Square IV at 500 Howard St. for its new headquarters.

But getting the deal done was a bit complicated. Landlord Heitman purchased the building in 2013 with the knowledge that a number of subleases were set to expire in 2018 and the building would be vacant.

Slack came along in the middle of 2016 with an interest in the site, said Mark Geisreiter of CBRE, who represented Heitman. The company beat out other tenants interested in the building.

Amber Schiada, director of research at JLL, said the lease is an example of how tech demand continues to drive the San Francisco office market.

Seven of the nine largest leases signed in 2016 — 100,000 square feet or greater — were signed by tech companies, she said.

Nearly 60 percent of all leasing activity has been driven by tech firms since 2010, double the share in previous cycles, Schiada pointed out.

“It’s been really incredible to watch the city evolve into a thriving tech hub over the last several years,” she said. “Technology remains the dominant demand driver for San Francisco office space.”

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